New rule proposals for sale of hemp products in Texas discussed in hearing

Public testimony on Texas HHS plan to regulate hemp

New rule proposals for the sale of hemp products were discussed in a hearing on Friday.

AUSTIN, Texas - New rule proposals for the sale of hemp products, including a $20,000 licensing fee for store owners, were discussed in a hearing on Friday.

The battle over how to regulate the hemp industry during the past regular session, caused a political debate between Lt. Gov. Dan Patrick and Gov. Greg Abbott.

Abbott essentially ended the legislative debate with an executive order, allowing conditional sales, but the hearing on permanent rules made it clear the hemp fight in Texas is far from over.

What they're saying:

Officials with the Texas Health and Human Service Commission spent a little more than three hours on Friday taking public testimony on the agency's plan to regulate the consumable hemp industry. 

Most who testified did not like what was being proposed.

"These rules are not about safety. They're about greed," said a hemp product business owner from New Braunfels.

TABC hearing on hemp products with THC

A youth drug awareness group wants Texas to increase the age restriction to legally purchase hemp products that contain levels of THC.

Last fall, Governor Greg Abbott ordered state health officials to create rules for the hemp industry. Abbott focused on preventing sales to people under the age of 21. 

That idea has been embraced by most in the hemp product industry, but many at the hearing accused state regulators of going too far.

"It’s insane what you're trying to propose, and it basically sounds exactly like Dan Patrick's legislation that he could not get passed," said Thomas Monty, who was making reference to the near-total ban Governor Abbott Vetoed.

Along with the age-gate, the proposed rules have new THC testing standards.

Industry advocates don’t like the move to total THC rather than Delta-9 THC alone. The biggest objection is the big increase in licensing fees. Manufacturers would see their annual license fee go from $250 to $25,000 per facility, and the yearly fee for retailers jump from $150 to $20,000 per location.

"We all want to be put in for enforcement. We all want safety, but we don't want to be taxed, regulated and licensed to death," said Colton Luther, a hemp business owner.

The commission was also warned the proposed rules could cause a broad ripple effect.

"You're not just regulating hemp, you're pricing Texans out of business. My company works and hits media marketing and, under these rules, my entire client base would be forced to leave the state or shut down, effectively killing my business and many others like me," said Patrick Pope.

DPS enforces age restrictions on THC hemp products

New age restrictions on hemp products with THC are in place and now the Governor is ordering state troopers to enforce those new rules.

But there was support for the regulations.

"Cannabis-induced psychosis is not new, but it is now a silent epidemic," said Christine Scruggs, who drove three hours to take part in the hearing.

Scruggs later spoke to FOX 7 about her awareness campaign that she launched after her son became ill.

"If we're not going to do a nationwide, public information campaign in Texas that talks about the harms of THC and teaches people as early as middle school. People in middle school bring vapes and gummies and stuff to the classroom. A lot of schools have vape detectors specifically for this reason and I would love Texas to come up with a widespread public information campaign to teach people, especially our youth, about the dangers of THC. Not gloss it over and say everybody does it, and it's no problem," said Scruggs.

What's next:

Written public comment on the proposed rules will be taken through January 19. 

The commission could modify the proposed rules. It’s unclear if doing that will require another public hearing. It’s not known when the new rules will actually be enforced, and it’s unclear how the new federal law, which takes effect in November, will apply to the state rules.